Unfortunately that a Totton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Totton property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Totton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Totton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Totton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Totton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn owned a 2 bedroom apartment in Totton on the market with a lease of a little over 59 years left. Finn on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Dr S Brooks completed a first floor flat in Totton in May 2000. The question was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Totton with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected monthly. The lease ended in 2082. Taking into account 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of costs.
In 2010 we were approached by Mr R Kelly who, having was assigned a lease of a garden flat in Totton in May 2001. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar properties in Totton with a long lease were in the region of £237,600. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed on 11 August 2093. Taking into account 67 years outstanding we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.